2. Take advantage of catch-up contributions
Whether you invest in a 401 (k) or an IRA, there are limits to how much you can save each year. In 2021, you can contribute up to $ 19,500 per year to your 401 (k) and $ 6,000 per year to your IRA.
However, if you are 50 or over, you are eligible to make catch-up contributions. Catch-up contributions save you more than the typical worker. Starting in 2021, people aged 50 and over can save an additional $ 6,500 per year in a 401 (k) and an additional $ 1,000 per year in an IRA. If you’re falling behind on your savings, these higher contribution limits can help get your finances back on track.
3. Automate your savings
It’s easy to put retirement savings on the back burner, only saving the money that’s left in your budget at the end of the month. But with this strategy, you run the risk of saving inconsistently or not saving as much as you should each month.
However, by automating your savings, you can save a fixed amount each month. Think about it …
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